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New mining tax measures
The Bartica Chamber of Commerce and Industry (BCCI) has rapped the Government over its new tax measures which it said will further cripple the mining industry.
According to the BCCI, these new measures imposed by Government will “kill the goose that laid the golden egg”.
“As worrying for businesses, job securities and the already paralysed Bartica
economy as a town and the domino effects on the community that depends on mining, [that was] built by mining and still depends solely on mining. Well-established businesses and residents of Bartica solely depend on mining for their survival. The contributions of miners to the development of Bartica have not gone unnoticed,” the BCCI noted.
The Chamber explained that Bartica was the nerve centre for Region Seven (Cuyuni-Mazaruni) and if miners had no choice but to pull out from operations, the already high unemployment rate would increase, as businesses would be forced to close since they were the main suppliers for miners.
“At present, approximately 60 per cent-70 per cent of the 15,000 population of Barticians is connected to mining. Just imagine, if miners do decide to pull out from mining activities, what will become of Bartica’s economy, which rise and fall with mining. Mining has remained the largest contributor to Guyana’s GDP [Gross Domestic Product] and had outperformed all other sectors, making it the lifeline of the Guyanese economy,” the BCCI explained.
The Chamber noted that even Finance Minister Winston Jordan informed Guyana’s highest decision-making body, during his budget presentation, about the satisfactory performance of the mining sector, and Natural Resources Minister Raphael Trotman has showered praises on the miners and the mining sector for the increase in gold declarations and surpassing of the projected target.
“But it is the miners who should be commended for their honesty and efforts to promote transparency in the sector. It is the miners who have been and remain one of the largest providers of hundreds of jobs in and around Bartica, not the Government. Mining is private investment.”
The BCCI pointed out that Government only facilitated mining, noting that miners must not be intimidated or bullied by the Government. According to the Chamber, Government has no direct investment in mining. “Private capital is being invested and, therefore, the Government will be powerless to stop miners from taking whatever step or decisions they so desire for their survival,” the BCCI noted.
In this regard, the BCCI urged compromise for the sake of job security and business survival in Bartica.
“BCCI notes with disappointment and sadness the GGDMA [Guyana Gold and Diamond Miners] had to resort to the media to beg for a meeting with His Excellency [President David Granger]. In light of this, BCCI urges the Honourable Minister of Natural Resources to mediate between his Government and the miners. BCCI urges more tax waivers and concessions for miners who in turn will provide much-needed jobs in mining districts, more so Bartica,” the Chamber expressed.
Some of the measures worrying the miners include increased tributors tax from 10 to 20 per cent, mandatory filing of yearly income tax return plus the payment of two per cent tax on gross earnings, and Value Added Tax (VAT) exemption on heavy-duty vehicles.
On Friday, the GGDMA had a meeting at its headquarters on North Road, Georgetown and according to reports, the miners agreed that a letter would be published and also posted to President Granger, informing him of their concerns.
Reports indicate that the miners settled on a two-week deadline for a response, failing which they would organise peaceful mass protests.
According to the new regulations, as announced by Government, certain goods and services will now attract (VAT. During the Budget 2017 debates in the National Assembly, Opposition Leader Bharrat Jagdeo had warned that these adjustments to the mining industry would bring about uncertainties as miners would be subjected to greater taxes.
He had noted that this would not augur well for the gold industry and would create hardships for small miners.
